Core Insights - Mandrake Resources has entered a supply agreement with Stardust Power to deliver up to 7,500 tons of lithium chloride annually to Oklahoma [1][3] - Stardust plans to produce up to 50,000 metric tons of battery-grade lithium carbonate per year once its Muskogee facility is operational [2][3] - The partnership between Mandrake and Stardust is set for a minimum of twelve years, with an option to extend until 2042 [3] Strategic Context - The agreement aligns with the U.S. efforts to reduce reliance on critical minerals from potentially hostile countries, particularly China [4] - Mandrake's control of a Utah location provides a strategic advantage in the supply chain [5] Financial and Development Aspects - The Muskogee facility is backed by approximately US$257 million in state incentives and funding [5] - Stardust aims to enhance sustainable energy leadership and create jobs through this project [6]

Core Viewpoint - Stardust Power Inc. has signed a Letter of Intent with Prairie Lithium to secure a supply of 6,000 metric tons per annum of lithium carbonate equivalent, which is crucial for the company's lithium processing operations in Oklahoma and supports its growth strategy [1][2][7]. Supply Agreement Details - The supply agreement with Prairie Lithium will provide a near-term feedstock that accelerates Stardust Power's business model and reduces risks associated with the development of Phase 1 [2][7]. - The agreement allows for flexibility in future phases to incorporate multiple chloride sources as production scales [2]. - Initial deliveries are expected to start in 2027, with the potential to scale up to 6,000 metric tons per annum, and Prairie Lithium has identified a production capacity of up to 17,000 metric tons per annum [3][7]. Strategic Location and Infrastructure - Feedstock will be delivered to the Port of Muskogee's Free Trade Zone, which offers strategic access to transportation networks and potential tariff exemptions [3]. - The Prairie Lithium Project is located in a resource-rich area with access to critical infrastructure, including electricity, water, and transportation [5][9]. Operational and Financial Implications - The agreement enhances Stardust Power's commercial position and opens new financing opportunities, including project-level debt and equity [7]. - The company is advancing in permitting and construction, with ground already broken at the Muskogee site, indicating strong operational execution [7]. Commitment to Sustainability - Stardust Power emphasizes its commitment to sustainability and aims to bolster North America's energy security through resilient supply chains [8][9]. - Prairie Lithium's project is designed to minimize environmental impact by using less freshwater and land, aligning with sustainable lithium production goals [9].